What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent if the perpetuity starts in year=4?
$10,000
$75,131.48
$1,000
$68,301.35
$82,402.36
In: Finance
|
Year 1 |
Year 2 |
|
|
red |
$1 each |
$2 each |
|
green |
$2 each |
$1 each |
In year 1 Abby buys 10 red apples and in Year 2 Abby buys 10 green apples.
Compute a CPI for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? (at least five sentences to explain)
Suppose Abby is happy eating red or green apples. How much has the true cost of living increased for Abby? (at least five sentences to explain)
In: Economics
#4
|
Category |
Prior year |
Current year |
|
Accounts payable |
41,400 |
45,000 |
|
Accounts receivable |
115,200 |
122,400 |
|
Accruals |
16,200 |
13,500 |
|
Additional paid in capital |
200,000 |
216,660 |
|
Cash |
??? |
??? |
|
Common Stock @ par value |
37,600 |
42,000 |
|
COGS |
131,400 |
171,986.00 |
|
Depreciation expense |
21,600 |
22,040.00 |
|
Interest expense |
16,200 |
16,974.00 |
|
Inventories |
111,600 |
115,200 |
|
Long-term debt |
135,000 |
138,946.00 |
|
Net fixed assets |
376,752.00 |
399,600 |
|
Notes payable |
59,400 |
64,800 |
|
Operating expenses (excl. depr.) |
50,400 |
67,343.00 |
|
Retained earnings |
122,400 |
136,800 |
|
Sales |
255,600 |
335,450.00 |
|
Taxes |
9,900 |
18,500.00 |
What is the firm's current year operating profit margin?
Submit
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
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#5
|
Category |
Prior year |
Current year |
|
Accounts payable |
41,400 |
45,000 |
|
Accounts receivable |
115,200 |
122,400 |
|
Accruals |
16,200 |
13,500 |
|
Additional paid in capital |
200,000 |
216,660 |
|
Cash |
??? |
??? |
|
Common Stock @ par value |
37,600 |
42,000 |
|
COGS |
131,400 |
171,986.00 |
|
Depreciation expense |
21,600 |
22,040.00 |
|
Interest expense |
16,200 |
16,974.00 |
|
Inventories |
111,600 |
115,200 |
|
Long-term debt |
135,000 |
138,946.00 |
|
Net fixed assets |
376,752.00 |
399,600 |
|
Notes payable |
59,400 |
64,800 |
|
Operating expenses (excl. depr.) |
50,400 |
67,343.00 |
|
Retained earnings |
122,400 |
136,800 |
|
Sales |
255,600 |
335,450.00 |
|
Taxes |
9,900 |
18,500.00 |
What is the entry for the current year's cost of goods sold on a common-sized income statement?
Submit
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
In: Finance
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation:
| Maris Corporation Income Statement Year Ended December 31, 20XX | |
| Sales | $3,800,000 |
| Cost of goods sold | 2,250,000 |
| Gross profits | 1,550,000 |
| Selling and administrative expense | 540,000 |
| Amortization expense | 200,000 |
| Operating income | 810,000 |
| Interest expense | 43,000 |
| Earnings before taxes | 767,000 |
| Taxes | 440,000 |
| Earnings after taxes | 327,000 |
| Preferred stock dividends | 30,000 |
| Earnings available to common shareholders | $297,000 |
| Shares outstanding | 198,000 |
| Earnings per share | $1.50 |
| Statement of Retained Earnings For the Year Ended December 31, 20XX | |
| Retained earnings, balance, January 1, 20XX | $840,000 |
| Add: Earnings available to common shareholders, 20XX | 297,000 |
| Deduct: Cash dividends declared and paid in 20XX | 150,000 |
| Retained earnings, balance, December 31, 20XX | $987,000 |
| Comparative Balance Sheets For 20XX and 20XW | |||||
| December 31, 20XX | December 31, 20XW | ||||
| Assets | |||||
| Current assets: | |||||
| Cash | $120,000 | $105,000 | |||
| Accounts receivable (net) | 540,000 | 528,000 | |||
| Inventory | 640,000 | 614,000 | |||
| Prepaid expenses | 29,000 | 58,000 | |||
| Total current assets | 1,329,000 | 1,305,000 | |||
| Investments (long-term securities) | 100,000 | 109,000 | |||
| Plant and equipment | 2,200,000 | 1,700,000 | |||
| Less: Accumulated amortization | 964,000 | 764,000 | |||
| Net plant and equipment | 1,236,000 | 936,000 | |||
| Total assets | $2,665,000 | $2,350,000 | |||
| Liabilities and Shareholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $414,000 | $270,000 | |||
| Notes payable | 500,000 | 500,000 | |||
| Accrued expenses | 34,000 | 50,000 | |||
| Total current liabilities | 948,000 | 820,000 | |||
| Long-term liabilities: | |||||
| Bonds payable, 20XY | 140,000 | 100,000 | |||
| Total liabilities | 1,088,000 | 920,000 | |||
| Shareholders’ equity: | |||||
| Preferred stock | 90,000 | 90,000 | |||
| Common stock | 500,000 | 500,000 | |||
| Retained earnings | 987,000 | 840,000 | |||
| Total shareholders’ equity | 1,577,000 | 1,430,000 | |||
| Total liabilities and shareholders’ equity | $2,665,000 | $2,350,000 | |||
Compute the book value per common share for 20XW and 20XX for the Maris Corporation. (Round the final answers to 2 decimal places.)
| Book value | |
| 20XW | $ |
| 20XX | $ |
In: Accounting
| U.S. Civilian Labor Force (thousands) | ||||
| Year | Labor Force | Year | Labor Force | |
| 2007 | 178,978 | 2012 | 180,688 | |
| 2008 | 179,715 | 2013 | 180,211 | |
| 2009 | 178,171 | 2014 | 181,298 | |
| 2010 | 178,710 | 2015 | 183,017 | |
| 2011 | 179,055 | 2016 | 184,700 | |
Click here for the Excel Data File
(a) Make a line graph of the U.S. civilian labor
force data.
| Line Graph A | Line Graph B | Line Graph C | Line Graph D |
Line Graph 1
Line Graph 2
Line Graph 3
Line Graph 4
(b) Describe the trend (if any) and discuss possible
causes.
Trend is (Click to
select) positive negative . There
seems to be an (Click to
select) increase decrease in the
rate of growth over the past few years.
(c) Fit three trend models: linear, exponential,
and quadratic. Which model would offer the most believable
forecasts? (You may select more than one answer. Click the
box with a check mark for the correct answer and double click to
empty the box for the wrong answer.)
(d) Make forecasts using the following fitted trend models
for years 2017-2019. (Round your answers to the nearest
whole number.)
| t | Linear | Quadratic | Exponential |
| 11 | |||
| 12 | |||
| 13 |
In: Statistics and Probability
| Item | Prior year | Current year |
| Accounts payable | 8,183.00 | 7,998.00 |
| Accounts receivable | 6,047.00 | 6,558.00 |
| Accruals | 967.00 | 1,357.00 |
| Cash | ??? | ??? |
| Common Stock | 10,760.00 | 11,094.00 |
| COGS | 12,629.00 | 18,144.00 |
| Current portion long-term debt | 5,006.00 | 4,946.00 |
| Depreciation expense | 2,500 | 2,811.00 |
| Interest expense | 733 | 417 |
| Inventories | 4,197.00 | 4,813.00 |
| Long-term debt | 13,675.00 | 13,302.00 |
| Net fixed assets | 51,628.00 | 54,611.00 |
| Notes payable | 4,366.00 | 9,933.00 |
| Operating expenses (excl. depr.) | 13,977 | 18,172 |
| Retained earnings | 28,546.00 | 29,809.00 |
| Sales | 35,119 | 45,546.00 |
| Taxes | 2,084 | 2,775 |
What is the firm's cash flow from operations?
In: Accounting
15-3.6 Balance Sheet Presentation of Available-for-Sale Investments
During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows:
|
Security |
Shares Purchased |
Cost |
||
|
Hawking Inc. |
910 |
$48,776 |
||
|
Pavlov Co. |
2,470 |
68,913 |
||
Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $64 per share and the Pavlov Co. stock had a market value of $50 per share. Galileo Company had net income of $377,800 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets.
a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.
|
Galileo Company |
||
|
Balance Sheet (selected items) |
||
|
December 31, Year 1 |
||
|
Assets |
||
|
Current Assets: |
||
|
Available-for-Sale Investments, at Cost |
$ |
|
|
Plus Unrealized Gain (Loss) on Available-for-Sale Investments |
$ |
|
b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments.
|
Galileo Company |
|
|
Balance Sheet (selected Stockholders' Equity items) |
|
|
December 31, Year 1 |
|
|
Stockholders' Equity |
|
|
Retained Earnings |
$ |
|
Unrealized Gain (Loss) on Available-for-Sale Investments |
|
In: Accounting
In: Finance
Currently, the term structure is as follows: One-year bonds
yield 9.50%, two-year zero-coupon bonds yield 10.50%, three-year
and longer maturity zero-coupon bonds all yield 11.50%. You are
choosing between one, two, and three-year maturity bonds all paying
annual coupons of 10.50%. You strongly believe that at
year-end the yield curve will be flat at 11.50%.
a. Calculate the one year total rate of return for
the three bonds. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
b. Which bond you would buy?
One-year bond
Two-year bond
Three-year bond
In: Finance
Currently, the term structure is as follows: One-year bonds
yield 9.50%, two-year zero-coupon bonds yield 10.50%, three-year
and longer maturity zero-coupon bonds all yield 11.50%. You are
choosing between one, two, and three-year maturity bonds all paying
annual coupons of 10.50%. You strongly believe that at
year-end the yield curve will be flat at 11.50%.
a. Calculate the one year total rate of return for
the three bonds. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
b. Which bond you would buy?
One-year bond
Two-year bond
Three-year bond
In: Finance